2. Audit requirements in Singapore - What you must know?
3. What are the audting and accounting standards in Singapore?
4. Why our auditing service is crucial for your Singapore company?
5. How can we help you comply with auditing requirements for Singapore company?
1. What is auditing service?
Auditing service is a professional examination of financial information, records, and processes within an organization. Usually conducted by qualified auditors, audit service helps your company maintain accuracy, and compliance with regulations and provide assurance to businessmen and investors that businesses are viable.
What is a statutory audit in Singapore?
For businesses, it is mandatory to appoint an auditor within 3 months from the date of registration or set up company in Singapore. Only companies describedunder s205B and 205C Companies Act section can be exempt form auditing requirement.
According to the Company Act in Singapore, every company must conduct annual audit. Auditing must be performed by a licensed auditor or a public accountant approved by Accounting and Corporate Regulatory Authority (“ACRA”). The tatutory audit must ensure accuracy, fairness, and compliance with Singapore's auditing standards (SSAs).
In addition, the company's financial statements undergo a thorough audit, with the audit completed no later than 14 days before presentation at the annual shareholders' meeting (Annual general meeting).
This timeframe can be changed if all shareholders agree that the audit can be conducted less than 14 days before the meeting. This auditing notice must be either attached to or acknowledged on the financial statements.
As your trusted corporate service provider, we offer a comprehensive ranges of Singapore audit services and ensure your company comply with the audit requirement. Our key service include:
- Statutory audits;
- Company internal audits;
- Preparation of audited financial statements.
2. Audit requirements in Singapore - What you must know?
Not all companies in Singapore are required to conduct year-end audits. To understand the audit process mandated by the Accounting and Corporate Regulatory Authority (ACRA), you should be aware of a significant change in 2014 audit exemption.
In line with the Companies (Amendment) Act 2014, effective from July 1, 2015, ACRA has introduced new guidelines for companies exempt from audits.
“Small company” is a new concept issued by ACRA to consider a company to be exempt from audit or not.
This concept replaces the previous regulation concerning an exempt private company with an annual revenue of $5 million or less for the financial year and a company with no more than 20 members, where no corporation holds any beneficial interest in its shares.
For a Singapore company to qualify as a small company, it must be a private limited company. Other Singapore company types and listed companies (Companies whose shares are listed on the Singapore Exchange Limited (SGX), either on the main board or the secondary board known as Catalyst) are subject to the annual statutory audit requirement.
Additionally, a company is considered small if it meets any 2 out of the 3 audit exemption criteria (outlined later in the next section Audit exemption for Singapore companies) for the immediate preceding two consecutive financial years.
In short, these criteria are based on the company's number of employees, revenue, and assets.
If a business meets the conditions for a "small company", it will be considered exempt from audit, to help small businesses reduce the annual audit costs.
A company (with a financial year beginning on or after July 1, 2015) is considered exempt if it qualifies as a small company, meeting the following conditions:
a. It is a private company in the financial year
b. It meets at least 2 of 3 following criteria for immediate past two consecutive financial years:
- Total annual revenue ≤ S$10m;
- Total assets ≤ S$10m;
- The number of employees ≤ 50.
For a company within a group to be deemed a small company,The following conditions need to be meta.
a. The company must qualify as a small company and;
b. The entire group must be a "small group," meeting at least two of the three quantitative criteria on a consolidated basis for the immediate past two consecutive financial years.
- Total annual revenue ≤ S$10m;
- Total assets ≤ S$10m;
- The number of employees ≤ 50.
For dormant company exempt from audit requirements, if
a. It has been dormant since its formation;
b. It has been dormant since the end of the previous financial year.
For companies established before July 1, 2015
If a company meets the criteria to become a small company in the financial year 2015 or 2016, it will be exempt from audits.
3. What are the audting and accounting standards in Singapore?
To be an offical auditors, they need to comply with the the Singapore Standards on Auditing (SSAs). In addition, auditors re also obligated to adhere to accounting standards to ensure that financial reports are presented comprehensively, reasonably, and in compliance with regulations.
To maintain a good footing in Singapore, your business must ahere to specific accounting standards issued by the Accounting Standards Council (ASC), with two primary standards:
- Singapore Financial Reporting Standards (SFRS): Based on the core principles of International Financial Reporting Standards (IFRS), this is the official standard for the majority of businesses in Singapore. It ensures transparency and consistency in presenting financial information.
- Singapore Financial Reporting Standards for Small Entities (SFRS for Small Entities): Modeled after IFRS for Small and Medium Enterprises (IFRS for SMEs),this standard provides simplified regulations suitable for smaller businesses, easing the compliance burden with accounting regulations.
The choice between SFRS and SFRS for Small Entities depends on the size, type, and operational status of your company. Both standards, however, share the common objective of ensuring the accuracy, reasonableness, and comparability of financial information, fostering a transparent and trustworthy business environment in Singapore.
With a seasoned team of auditors, Global Links Asia can help you implement auditing and accounting standards that align with your specific needs.
4. Why our auditing service is crucial for your Singapore company?
Audit plays a crucial role in enhancing the quality and reliability of a company’s financial disclosure to investors by:
- Ensuring transparency in data and transparency in data and compliance with International Financial Reporting Standards (IFRS) or Singapore Financial Reporting Standards (SFRS)
- Detecting loopholes and errors in bookkeeping processes.
- Identifying new issues related to data fraud, financial reporting, Anti-Money Laundering, etc., assessing potential risks and the likelihood of material errors.
- Adding credibility and reliability to your company's financial statements. The report confirms whether the financial statements adhere to financial reporting standards and are true and fair. This determination is based on the auditor's evaluation of evidence gathered during the audit process.
Therefore, auditing is a crucial activity for businesses and organizations of all sizes, not just large enterprises. For top-notch Singapore company audit services, contact Global Links Asia. We provide expert advice and support to help your business stay compliant and financial stability.
5. How can we help you comply with auditing requirements for Singapore company?
With a strong partnerships with leading audit firms in Singapore over several years, Global Links Asia can recomment and guide you to a suitable auditing company based on the specific needs, size, and complexity of your business.
As your trusted one-stop corporate service provider, we offer comprehensive services for company management from monthly/yearly tax accounting service, timely tax filings and other related services to facilitate corporate audit operations in Singapore. This includes:
- Provide insights into auditing standards (SSAs), Monetary Authority of Singapore (MAS) regulations, and more.
- Assess company books, accounts, and financial situations to recommend an appropriate audit partner that ensures cost-effectiveness without compromising quality.
- Assist businesses in preparing necessary audited financial statements;
- Address your queries about the audit process, and help you work better with your trusted auditors.
With our dedicated support, you can focus on growing your business while we handle everything else.
With the support of Global Links Asia, Singaporean businesses can rest assured that their audit process will be carried out professionally and effectively, helping them achieve their business goals.
6. FAQs about Singapore audit services
Singaporean laws mandate that private limited companies undergo an official audit of their financial statements, conducted by a licensed auditor or a public accountant. This annual audit is a legal requirement, ensuring transparency and compliance with financial regulations in Singapore
All companies must conduct an annual audit, except for certain exemption.
The financial statements must be duly audited not less than 14 days before they are pressented in the annual general meeting , unless notified otherwise.
You shoudl use auditing services for your Singapore company if your company is not exempt from the audit requirements.
We suggest you entrust an independant auditors before holding the annual general meeting to ensure the financial statements is audited as required.
A company is exempted from auditing if it is deemed as a “a small company".
- It is a private company in the financial year;
- It meets at least 2 of 3 following criteria for immediate past two consecutive financial years:
- Total annual revenue ≤ S$10;
- Total assets ≤ S$10m;
- The number of employees ≤ 50.
